North American stocks may open higher Friday after weaker-than-expected report on U.S. gross domestic product for the second quarter.

The U.S. Commerce Department today reported that GDP increased at a seasonally adjusted 2.5% annual rate April through June. The gain was weaker than the first quarter’s strong 5.6% pace and came below Wall Street expectations of a 3.2% increase. Gauges of inflation climbed.

In other economic news, the final reading of the University of Michigan consumer sentiment index is due for release at 9:45 ET.

The Canadian dollar opened at US88.02 cents, up 0.12 of a cent.

In M&A news Inco said its offer for Falconbridge expired on July 27 because the 50.01% minimum share tender level of the offer had not been reached. Inco said it would now concentrate on completing its transaction with Phelps Dodge to create the world’s second-largest nickel producer and one of the world’s largest copper producers.


In earnings news, Fairfax Financial Holdings Ltd. said Thursday its second-quarter profit jumped to US$223.6 million from the US$5 million it reported a year ago, when the company booked a $103.1-million pre-tax charge.

Celestica said it lost US$30.3 million in the second quarter, as costs associated with a previously announced restructuring and the sale of a plastics business erased a year-earlier profit of US$12.6 million.

U.S. oil giant Chevron said its net income rose 18% to US$4.35 billion, or $1.97 a share, from US$3.68 billion, or $1.76 a share, a year ago.

Crude-oil futures fell 45 cents to US$74.09 a barrel early Friday.

European stock markets were sluggish after recent advances, with the German DAX 30 down 0.4%.

In Asia, Tokyo’s benchmark Nikkei 225 index rose 163.09 points, or 1.07%, to finish at 15,342.87. For the week, the index rose 2.24%.

In Hong Kong, the blue-chip Hang Seng Index rose 38.27 points, or 0.23%, to 16,955.04.

Toronto stocks were down Thursday, led into negative territory largely by financials stocks, and declines in resource plays despite rising commodity prices.

The S&P/TSX composite index fell 120.64, or 1.02%, to 11,758.91.

Eight of the 10 TSX main sub-groups were down.


The S&P/TSX Venture Exchange index gained 25.62, or 1.01%, to 2,570.70.

In New York, markets ended lower as worries over the economy and Middle East tensions overshadowed strong quarterly earnings news.

The Dow Jones Industrial Average fell 2.08 points to 11,100.43. The Nasdaq composite Index was down 15.99 points to 2,054.47. The S&P 500 Index dropped 5.20 points to 1,263.20.